Minimalist budget simplify your life and expenses to get out of debt, save more money, and achieve financial freedom

If you wish to make the best decisions at the right time, then it is important toconserve your mental energy.. Sayfor example, you have a laptop that can help you maintain two differents

Minimalist Budget

Simplify Your Life and Expenses to Get Out of Debt, Save More Money, and Achieve Financial Freedom

Percy McNeil

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Table Of Contents

Chapter One: The Proper Minimalist Mindset for Money Chapter Two: Taking a Hard Look at your Finances

Chapter Three: Setting Up Your Minimalist Budget

Chapter Four: Overcome Your Debts the Smart Way

Chapter Five: Communication of Finances with a Significant Other

Chapter Six: Using Minimalism to Improve Your Finances Chapter Seven: Setting Goals and Tying it all Together

I want to thank you for choosing this book, ‘Minimalist Budget - Simplify Your Life and Expenses to Get Out of Debt, Save More Money, and Achieve Financial Freedom’ and hope you find it informative in your journey to

discover the art of a Minimalist Budget

Do you feel like you have a lot of useless things lying around the house? Doyou wish to minimize the clutter in your life and remain stress-free? Do youwish to adopt a minimalist lifestyle so that you can save money? If theanswer to these questions is yes, then you have come to the right place!

Minimalism is a concept that deals with having less and being happy withwhatever you have It makes the process of decision-making easier thusallowing you to lead a simpler life

It is estimated that humans make around 10,000 to 40,000 decisions per day,thus leading to decision fatigue This mainly stems from the idea of havingmore to be happy, but if there are only a few things to worry about, then it allbecomes easier

If you are looking to develop a minimalist approach and would like tounderstand the various aspects involved, read on

This book will help you understand what minimalism is all about and howyou can use it to lead a fulfilling, happier life This book will help youunderstand the different ways you can improve your life by acceptingminimalism in your financial life

Chapter One: The Proper Minimalist Mindset for

Money

In this section, we will learn what minimalism is and how being a minimalistwill help you make better decisions when it comes to how you spend yourmoney!

Being a minimalist has captured the imagination of people trying to breaktheir life down to the basics The concept is now gathering steam and isconsidered to be one of the most popular trends in the world of savingmoney

But not many people understand the true meaning of minimalism and what itstands for Some assume it is nothing but having fewer things around;however, it is much more than that and it refers to a mindset or philosophythat you should keep up with

What Is Minimalism?

Minimalism’s one definition can be the idea of pursuing happiness A lot ofthis philosophy stems from understanding what can make you happier as aperson and following what you think is right This usually means havingimportant things in your life that make a difference

The basic philosophy associated with this concept relates to understandingthat having more does not mean it is better If you feel like some things areunnecessary, then minimalism has to step in

The world that we now live in teaches you to have more to be happy Itbecomes important to filter out this philosophy By choosing to be aminimalist, you can be truly free with yourself and your interests You willhave less of the distractions which only make you feel like there are manythings to worry about

Most of us tend to attach importance and emotions to how much we spend to

buy something We attach meaning to the things we have instead ofunderstanding their true value.

We do not think if what we have is helping us fulfill our goals, and end upfocusing on the amount of money we are making and if it is enough to buy usgadgets and other things in trend

Another philosophy that minimalism abides by states that less can give you alot more in life You will be able to save more and do other things andappreciate them more This includes traveling more and having more excitingexperiences, without having to worry about too many things

This can make you happier and teach you to be more independent in the longrun The philosophy of minimalism does not set any hardcore rules and yet,the basic principles serve as an outline to lay down some rules

Another part of minimalism states that it is important to value yourself moreand not the things that you have If you have a hundred different things, thennot only can it distract you but also make it difficult for you to lead a regular,stress-free life

If you have just about ten items that are absolutely essential, then you will nothave the pressure of choosing between many things of the same nature, andlead a carefree life

Simplifying Decision-Making

As mentioned earlier, the human mind can make many decisions in a day thatcan lead to decision fatigue In such case, it becomes essential to simplifythings so that decision making becomes easier

When it comes to making decisions, it is important to maintain a healthymind and ensure that the brain is well nourished If you suffer from mentalfatigue, then you are likely to make the wrong decisions This can lead to notbeing able to decide soundly and end up going for too much This can goagainst the basic philosophy laid down by minimalism

If you wish to make the best decisions at the right time, then it is important toconserve your mental energy It helps to take inspiration from some peoplewho lead a minimalist lifestyle.

Take for example certain CEOs, who are known to be minimalists Theywould implement these concepts in all aspects of their lives including theirhomes and also the simplistic design philosophies at their companies

Certain CEOs also wear the same thing every day because they don’t want towaste their precious mental bandwidth on a decision as trivial as what to wearfor the day Instead they want to keep the main vision in sight, which is tocreate the best product possible for their customers

Minimalism will allow you to conserve your mental energy so that decisionmaking becomes simpler, here are some things you have to do

Identifying The Patterns Behind Decision Making

Most of us tend to live lives that are guided by habits We tend to wake up atthe same time daily, consume our breakfast, commute, get to work etc

Having such a schedule may help lead a simpler life This, however, does nothold true for many

Even though it seems like a set schedule is being followed, there can be manythings that a person does wrong such as getting up early to check emails andending up with decreased productivity Instead, focus on doing things that aremore important such as getting in some exercise or making sure that you eat ahealthy breakfast

Observing The Situations

The next step is to observe the decisions that might be making you anxious.You have to learn from them and understand what these are

It can be a certain situation or a decision that you are trying to make that canmake it difficult and confusing for you It can be stressful and lead to not

being able to make the right decisions.

Shifting Focus

One philosophy associated with minimalism states that it is best to shift yourfocus and efforts to finishing things rather than looking for ways to finishthem For example, if your kitchen is messy and unorganized, then get down

to cleaning and organizing it instead of looking for ways to tidy it Simplytaking an imperfect action matters far more than spending excessive timewondering about what the best way to do something is

Basically, it is important to make decisions instead of spending a lot of timethinking of what the best decision to make is

Electronic Notifications

It is important to reduce the number of notifications that you receive Theycan cloud your judgement and make decision making tough

If you tend to receive non-stop notifications, then it will be difficult for you

to make important decisions and get focused Cut it down to the bareminimum so that you can focus on whatever is important

Versatility

Going for things that are versatile can help a minimalist in many ways Sayfor example, you have a laptop that can help you maintain two differentsystems, one dedicated to personal life and the other for professional.

This will make it easier to own just one laptop and not worry about havingtwo Similarly, having a cell phone with two sim cards - one for work andone for personal life can make it easier to carry just one cell phone

Thus, going for versatile items can make it easier for you to make decisionsand drive away stress

do away with the rest

As you can see, by adapting a minimalist approach, you don’t just conservemoney but also your mental energy so that it is easier to make importantdecisions The main aim should be to be productive and practical to promoteminimalism

Anecdotes

In this section, we will take a look at personal stories of how bad control spending habits can be and how implementing the tips here in thisbook, helped one of my friends’ financial life to dramatically improve

out-of-But before we proceed, you need to understand that no two stories are thesame when it comes to minimalism and how people begin to realize itsimportance in their lives To be frank, not many people think that they toocan have a minimalist success story to speak of considering the amount ofclutter that exists in their lives

As mentioned earlier, a minimalist is someone who decides to have only afew important things in his life instead of having too many This can extend

to physical things as well as ideas and ideologies

Having this can help make faster decisions and lead a clutter-free life Aminimalist mindset can be quite powerful and one that can set you free

To be honest, it is easier to think about having a minimalist life than actuallyliving one To understand what goes into realizing the importance ofminimalism and how it can be adapted, here is a personal journey to lookinto

Most people tend to have a lot of stuff Although nobody really is raised to bematerialistic, most adults tend to hold on to a lot of stuff

Society plays a big part in making people believe that having too many thingscan help them fit in better Right from having the fanciest, latest cell phones

to other electronic gadgets and sporting the latest fashion, people arepressured into thinking that they have to have it all to be more acceptable

They tend to work hard and earn more money just so that they can afford tohave the ideal lifestyle that they have always wanted

I know a friend who wanted it all right from a young age and started livingalone right from the age of 16! She was still a student at the time but did notwant to live like one

She ended up working two jobs and by the time she was 19, she nearly had itall! But it wasn’t until she met a few foreign students that she realized theimportance of travel and how gathering experiences was more valuable thangathering things

It was then that she decided to sell her things and travel the world and live anomadic life She narrowed her things down to the bare minimum and carriedonly what she could fit in a backpack, but this did not last long

In no time, she began to shop everywhere she went, often returning withsuitcases full of things she had bought from abroad Her wardrobe startedgetting bigger and she replaced everything that she had managed to get rid of.

This again led to chaos, confusion and eventually unhappiness and loss of aminimalist mindset

Today, after understanding what minimalism actually is all about and howshe needs a change in mindset and not in physical aspects, she has realizedthat her unhappiness was a result of contradicting her ideologies

Although she had managed to get rid of many unwanted things to be able totravel, she ended up replacing them with other things she bought from aroundthe world All this led to credit debt and yet, no satisfaction

Add to it the pressure of cleaning and maintaining the different things thatshe owns and making sure they are well presented All this can take up a lot

of time and space in your life, making it difficult to make simple, everydaydecisions

It was not until she was 25 that she realized how minimalism should truly beimplemented She went through a few blogs on the topic and decided todownsize her house, wardrobe, and life in general

Going through success stories of people who had implemented minimalism intheir lives helped her understand how she can implement the same in her life.Just the fact that many people were intentionally choosing to have fewerthings in their lives made it possible for her to realize the importance of beingable to do more and gather experiences rather than hoarding things

In doing so, she was able to save on quite a bit of money She no longer had

to work two jobs and could focus on just one that helped her make enoughmoney to buy the essentials and still be able to save She was able to travelmore and spend more time with family and friends

It was not as easy for all of this to come about She had to make many toughdecisions for all this to be possible

It is quite difficult for a person to change their mindset and adaptphilosophies that are tough to implement It is not just the big decisions butalso small ones that matter, such as getting rid of unused cutlery that canmake it extremely difficult for a person to implement minimalism.

Although minimalism as a concept sounds easy to adapt to, it can haveseveral intricacies that need to be understood and implemented tosuccessfully embrace it

It might not be possible for many people to implement minimalism in theirlives, especially if they have a lot of things to declutter It might take themanywhere from six months to a year to be able to make sense of the thingsthat they have and understand that they do not need so much to lead acomfortable life

One of the most important changes to bring about when trying to be aminimalist is to think of future goals It is not important to have fancy things

if you wish to save more Fancy things will not give you the same pleasure astraveling the world or meeting new people or making memories with others

What Is Life Like As A Minimalist?

Minimalists are common people who have realized the importance of havingjust a few things in life and being content with it These are people who donot count their possessions and only have a few

For example, they might just have one thing that can serve a purpose asopposed to many different things It is important to replace the thing only if it

is no longer usable

Another example could be if you have one pair of shoes to go out and onepair to use inside the house, you have to replace them only if they are nolonger salvageable and not go for many shoes at a time

The same goes for office supplies and other things that can be used fullybefore being discarded If you have too many unnecessary things, then they

will be wasted.

It will also take up a lot of space and make it difficult for you to organize it

Try to organize your house and get rid of excess furniture It is best to ownjust one piece of furniture that can serve the purpose as compared to manydifferent pieces

Say, one bookshelf, one set of couches and one center table for the livingroom can make maintenance simple and the room less cluttered If possible,downsize your house and go for a smaller space that serves the utility

Minimalism can change your life forever Be it your lifestyle choices, theway you save money to the funds you set up for the future, you will be able

to organize your finances and life as a whole

If you happen to have debt, then you will be able to pay it off in a better way.You can enjoy life and not worry about things

You can take more holidays and spend time with family and friends You willnot feel as though you are being made to do things just so you can fit inbetter

You will only do things because you wish to do them You will be free frompressure and the need to buy things just to be happy

When you need lesser things, you will feel less tied and down and insteadyou’ll feel much more free You will be able to dream big and go for thingsthat were difficult to attain before

You can have financial freedom, peace and feel good about doing somethingyou thought was impossible or difficult to do

Understanding Emotional Spending

How a person spends their money is more or less a personal decision Thatbeing said, it is important to be able to understand what emotional spending

is and identifying the signs.

To put it simply, an emotional spree can be any type of shopping that isprompted by emotions If you tend to do this often then it can lead to issues

If you spend too much time shopping that is overridden by emotions then youbecome an emotional spender

You might not always want the things that you buy and end up buyinguseless things that have no true value

Emotional spending is now viewed as a compulsive disorder where a personshops as a response to their negative emotions to feel good This is especiallyprominent when the person does not set boundaries and gives into emotionswhile spending

It is important to understand that emotional spending might not be a signalfor immaturity or being too irresponsible It can be a compulsion that istriggered off by emotions

People might not have control over the shopping, as with their emotions This

is especially easier in a society that prompts us to constantly buy things to behappy This can be deep-rooted and difficult to undo

One of the best ways to deal with emotional spending is by identifying thedifferent signs that are associated with it These signs are indicators that there

is more to spending habits than just treating yourself every now and then tosomething special

If you are able to identify these things, then you will be able to find effectivesolutions for it Do not panic or blame yourself if you find that you havesome of these signs

Consult a friend or a financial advisor who can help you undo some of thehabits that might be leading you to spend emotionally Let’s cover some ofthese bad habits now:

Instant gratification

It is not a secret that people like getting new things to feel good Instantgratification can end up being a big part of emotional spending and a means

to inspire people and make them happy about life in general People feel thatnot shopping for gratification will leave them unhappy or dissatisfied Thiswill prompt them to shop more and instantly feel good about life as a whole

Shopping to escape

Shopping can be a fun activity that people engage in, be it in a mall or anonline store It tends to be a pleasurable activity that can distract and escapefrom everyday stress It can also help a person escape from guilt or hurt andserve as a band-aid that will only try to cover up the real issue at hand

Competition

In this day and age where competition exists in all walks of life, you mightfeel like you are part of a shopping rat race You feel like you are competingwith a lot of others to buy the latest things that can make you happy in life.This can be quite unhealthy, as it will end up burning a hole in your pocketjust to fuel your pride and self-esteem

Transforming

Many people tend to buy things just because they wish to feel anew Be it anew wardrobe or a new hairstyle, changing yourself to look different canmake you go shopping Some people also tend to change their houses just to

be able to incorporate new things They think of it as an instant fix that canhelp them change the way they feel, look or live their lives

Buying and returning

Some people instantly buy what they like online and then change their mindabout it even before it arrives This might be a sign of emotional spending asthe purchases are made impulsively without much thought put in Suchimpulsive purchasing can lead to a lot of time and energy wasted

Celebrating yourself

Some might end up spending money as a means to celebrate themselves Be

it buying fancy gadgets or clothes or treating themselves to a fancy meal at an

expensive restaurant, some people might end up indulging in these activitiesjust to celebrate their lives This just means that they are unable to controltheir spending habits and they give into emotions quite easily.

Money stress

Some people tend to engage in emotional spending when they are stressedabout money If there is a financial gap, then they will feel like spending onthings that are on sale to be able to save money on them, but they will end upspending more than they normally would on those things There will come atime when they will not be able to control their spending and end up goinginto debt This will lead to further stress

Do not worry if you have identified any of the signs here, as it is easy to undoemotional spending just with a little effort Right from adapting smallstrategies such as unsubscribing from push notifications from shopping sitesand not visiting malls during sale season can help you put a leash onemotional spending

Setting Up A Minimalist Budget

Budgets should not be viewed as mere bill payment mechanisms and should

be used to control how much money is spent in a month Not many peopleuse budgets to set aside money that can be used to buy just the essentials andend up sending a lot

One good minimalist budget strategy is known as the 50/20/30 strategy It is

a simple philosophy that makes use of simplistic principles that are guided by

The core concepts are simple to understand and adapt The budgeting systemwill ensure that you establish financial grounding.

Here are the different rules of the 50/20/30 budgeting system explained

50% of your income is set aside for essentials

The very first rule to abide by states that you have to set aside 50% of yourincome for essentials This can be an absolute necessary part of life if youwish to live as a minimalist

The first step to achieving this would be to consider the different things thatcan be classified as essentials Not everything will be essential and only thosethings that you cannot spend the entire month without will be consideredessential

These will depend on where you live and the things you need to livecomfortably In most cases, these expenses will be the same and include food,transport and utility bills

The percentages might differ based on what and how much a person needs Itcomes down to the total sum based on the individual costs

Say for example, some people might live in a small apartment but commutelong distances Some might live in a bigger apartment but walk to work Inthis case, one person would have to have a larger budget for transportationand a smaller budget for his living expenses And for the other person theopposite would be the case He would need to account for a larger livingexpense and a less expensive transportation cost

20% of your income is set aside for savings

The next step is to set aside 20% of your income for savings It is extremelyimportant to save or have an emergency/debt/future fund in place

You have to add money to these accounts on a regular basis so that you cansecure your future, but you only have to add money to this fund after you

have set aside 50% of your income for essentials.

For this to work, it is important to take this fund seriously You must ensurethat 20% of your income is calculated and directed towards this fund

Again, the amount might differ month to month based on how much you arecontributing to the previous fund You are allowed to tweak it but notallowed to forgo it

You might tell yourself you will forgo it one month and contribute a littleextra the next month but this might not work out as you will end up making it

a habit Remember that it is never too early to start saving for your retirementand the earlier you start the better off you will be

30% of your income is set aside for personal use

The next and last category is about setting aside 30% of your income forpersonal use Some financial experts might say that this is an unnecessarycategory but it can be quite difficult to completely eliminate certain expensesthat come up every now and again

It is fine to spend just 30% of your income on certain things but can bereduced if you are able to control temptations Any remaining money can becontributed to the funds from the previous category

Some of these items can include cell phones, parties, cable television, newclothes or shoes, eating out at restaurants, etc You can decide on things thatare important and those things that can wait

We’re trying to live more of a minimalist lifestyle here so only get newclothes for example if you really need to Don’t buy new clothes simplybecause you have money leftover in the budget for it Use your extra moneywisely and understand that you might not need to use 30% of your income forpersonal use If that’s the case, then don’t be afraid to save more than 20% ofyour income per month

You really don’t want to give in to pressure Buy only those things that are

absolutely necessary.

For example, it is a good idea to indulge in some fitness-related aspects such

as joining a gym or buying gym equipment, etc

Your personal expenditure can also include buying gifts for others, butremember that you are only allowed to spend 30% of your earnings and notanymore

It might seem like a tough task at the beginning but it will get progressivelyeasier as you go Establishing these basic habits right from the beginning canhelp you reap the benefits for the rest of your life

You do not need a high income to be able to make these basic contributions.Even those who have just started working can adopt this plan

You can get the percentages right just by following a simple budget Repeatthe budget every month and make any minor changes based on the level ofexpenses

With time, you will be able to save more money and put it to good use Thepercentages can provide an ideal framework for you to base your monthlybudget upon

You can determine what is essential for you and how much should beallocated for the different expenses Consider taking your spouse’s help andget them to follow the same budget

You can save more together and contribute a bigger sum for your retirementfund You can also find software easily that will help you allot the moneyaccording to the 50/20/30 rules

Society And Minimalism

In this section, we will take a look at how society trains us to be consumersand makes us think that more material possessions will make us happy.Unfortunately, the pressure to fit in makes us give in and eventually you get

stuck in an endless loop of spending.

Right from pop songs to make up ads, consumerism is often a mainstreamtool used by society to make us think that we need more to be happy It can

be identified as a poison that makes us think we can be happy but can end uperoding our core beliefs

Consumer behavior theorists understand that motives such as envy can makepeople go after excess consumption This can be quite insatiable and oftendifficult for people to control their spending

There have been many studies on consumerism over the years and somethingknown as the Easterlin paradox has been identified which says that increasingconsumption does not make us happy

It states that even though rich people in wealthy countries were happier thanthe poor folk, they were no happier than wealthy people in poor countries.This means that happiness was based on relative income and how peoplewere positioned financially

But this theory has been questioned over the years especially in 2006 when acomparative study examined people and their happiness and found that those

in sub-Saharan Africa were not as happy as those in India and those in Indiawere not as happy as people in Europe

However, these results could come about because of the fact that we still needcertain necessities to be happy If you’re struggling to pay for basicnecessities such as shelter and food, then that would undoubtedly affect yourhappiness

Happiness is probably the last thing on your mind at that point, you’re moreworried about where your next meal is going to come from! However, onceyou reach a certain income, using that extra money to buy more materialpossessions shouldn’t do much to increase your happiness

In most cases, people’s understanding and perception of products andservices play a big part in consumerism Society makes us believe that it is

important to keep up with the trends and adapt to things that are regarded ascool.

Right from fashion to electronics, there can be a lot of things that peoplethink should be included in their life as it can make them feel happier Say forexample, a company releases a new model of their latest phone

People who already have the latest one will feel like they need the next one orthey will be left behind Even if it serves the same functionality, people willbuy it just to have the latest model

As per research, just the thought of buying something that is “trending” or

“popular” can make people quite excited It sparks a pattern in the medialprefrontal cortex and leads to activities that are the same as when someonereceives a compliment

People tend to build internal pressures that make them want to go after thingsthat are perceived to be cool or trendy by society in general They tend tobuild a materialistic expectation and try to go after their needs just to takepride

It is difficult to understand how products and services can impact our mindsand compel us to buy more based on social impulses Pretty much anyone caninfluence us into buying certain things that make us feel as though we belong

in society in a better way

This is better known as social selection Social selection refers to a deeplyingrained need in us that makes us want to showcase our value in society

It helps people showcase their worth and status in society Many aspects oflife can be influenced from what we wear, to what we eat and how we presentourselves

This aspect is not new and has existed from a very early time point Back inthe day, people used to find rare items such as shells to make necklaces to usethem in a symbolic way to signify their position in society

Today, right from cars to lavish lifestyles, people tend to indulge in luxuries

to showcase their stand in society even if there is no need Most of the thingsthat people buy are based on information that is processed in the medialprefrontal cortex where things are sorted out based on judgment and self-esteem

It can create a need to receive respect from society and influence self-esteem.All this goes to show that consumption helps people tap into basic needs forsocial esteem that can drive them to create social groups that share commonvalues and beliefs

It indicates a pattern of consumption that helps people tap into their ownbeliefs and needs to fit into communities that society has created Most of theproducts that are available are social signals to consumers

Right from cars to clothes to phones, each product is consumed based on a setpattern A majority of the products that are consumed these days impact ourthought processes and influence our social identity

Having certain things can boost our happiness and reward us in differentways As per experts, some people place self-esteem above some basic needs

It is just human nature to be respected by others to fuel self-esteem.Consumerism can tap into people’s reward systems and make them go afterthings just to feel rewarded

Consumerism can thus be summed as a way of converting earnings into alifestyle that can help to engage in shopping for things that we assume canhelp us be better accepted in society It can help us feel respected and valued

People who buy for experiences such as a movie ticket or a zoo ticket aremuch happier as they will be able to experience them They will also have abetter societal connection and experience increased satisfaction.

This is seen as an extension of the basic need theory where food, shelter, andclothing are considered to be the basic necessities of wellbeing

In a study, participants were made to write about their recent purchases andanswer questions based on it The ones who had spent money on experientialpurchases regarded their money spent on experiential purchases was betterthan what they had spent on consumer goods

This indicated that experiences could help induce long-term satisfaction It isbetter to “purchase” experiences as compared to material goods and services;society makes us believe that having more things can make us happier whenthis isn’t the case in reality

Mentality About Money

We grew up learning that money is scarce and hard to come by and we need

to shift to an abundance mindset when it comes to money Most of us haveheld onto that belief that money is scarce and we’ve never questioned it

Many tend to believe that what was taught to them as children holds true forlife A scarcity mindset stems from lessons given to children and someaffirmations that make them believe money is scarce

It is important to break free from this mindset and move to an abundancemindset

Some affirmations that are negative include “There is never enough” “I’m notgood enough” “Money is a scarce commodity” etc

These can lead to beliefs that are quite limited in nature and can make peopleget stuck in a scarcity loop This usually arises if you believe that money isnot in your control and are discouraged to give up going after it

In fact, some might not even try to go after making more money People willend up saying “I do not make enough money and cannot save.”

This is the wrong mindset to have, as it can be inconclusive You must focus

on positives and believe in them to create opportunities for yourself for thefuture

If you end up believing that something is not possible then you will not want

to spend your energy going after it Many people tend to think that they canonly live paycheck to paycheck and that struggling with money is somethingthey just have to deal with

Those who have this mindset will not live comfortably as they will always bestressed and worried about money They will not be able to recognize theirfull potential

But there are ways in which you can be financially free even if you’re in atight financial situation right now It all starts with your viewpoints on moneyand keeping a positive attitude

You will, however, remain skeptical of this if you have already made up yourmind and aren’t willing to change it It will take quite a bit of effort fromyour end to undo your beliefs and believe that you can earn money and affordthe life of your dreams

All you have to do is develop an abundance mentality that teaches you howmoney is not a scarce resource but an abundant one You have to startbelieving that you can save money and afford the life of your dreams

The abundance mentality will help you remain financially free You have tobelieve in it to be able to achieve it

It is this belief that will help you take appropriate actions and make you goafter things that you thought were impossible to attain This mindset willwork in your favor if you give it time You must be persistent and starve offnegative thoughts that can send you off track

Many people start off on the right foot but end up going off track as soon asthey are pressured into thinking that they are incapable of doing certainthings They allow challenges to deter them and stop chasing their dreams.

As soon as it starts to look tough, they begin backtracking and decide it is nottheir cup of tea to pursue They remain stuck in a backward thinking and donot take action

To help you through this, there are some limiting thoughts that you have toconquer Doing so can help you negate your self-doubting beliefs and help toshape your positive belief system

You will learn the ways in which you can shape your identity and develop anabundance mentality that can help you secure your future

Here are the self-limiting beliefs that you must avoid subscribing to

Money is a scarce resource

This is one of the most common self-limiting beliefs that people tend tocarry It is a fear that makes people believe they will not have enough money

It leads to the scarcity loop, making it difficult for many to step out of One

of the best and easiest ways to break away from this is by curbing yourspending habits, especially on emotional shopping

At first, this might seem a bit cruel or like deprivation from what you lovedoing most but the first step towards developing an abundance mentality will

be by controlling your spending habits Remember that you have to changeyour belief system as a whole and not simply cut up your credit cards

You have to work on your belief system and change it You have to tellyourself that you are capable of achieving financial freedom and reallybelieve it

If you end up developing a scarcity mindset then you will feel like you willnever be able to put a leash on your spending habits, but do not think that youhave to torture yourself and live life like a complete penny pincher That

would lead to unhappiness

You have to be able to build a wealth resource for yourself by saving moneyafter spending a small amount on buying things you like The need of thehour is to do away with needless shopping trips and track where your money

is moving

You will feel at peace knowing that you are saving money for the future andalso have enough to spend on things you enjoy and get a lot of value from.You will slowly begin to realize where to cut down and know where to putyour money

It will come naturally to you to recognize where your money will do well andwhat will end up being a dead investment The abundance mentality willteach you to save more and spend wisely

In fact, you will be deprived of your guilt and break free from the scarcityloop If you feel like you do not have enough, then you will make the effort

to save more

You will realize that a permanent solution lies in changing up your beliefsystem for good It is the ideologies outside your limiting thought processesthat will help you follow on the path of abundance

Once you realize your financial wellbeing is directly related to your positivethought process, you will begin to save more and showcase personalgratitude

The right abundance mentality to have for this belief is “I am thankful for thepaychecks I receive.”

This loop can help you establish a positive approach towards your financialwellbeing and allow you to accept the wealth you already possess Regardless

of how little you have saved currently, you will begin to think that you will

be able to save more and have abundance

For you to understand this, you must think of a situation and take some time

to clear out your mind and relax Draw in a few deep breaths and think of theplace where you work.

Imagine that it is closing down and you do not have a job Imagine that allyour savings have now disappeared

You have lost your house and your car and most of your belongings Youalso have the support of your family and friends and community as a whole

In such a situation, you will work that much harder to gain back everythingthat you have lost and establish normalcy As you know, you haven’t lost any

of this yet and must make the same level of efforts so that you will be able tosave more for future emergencies or surprise expenses

Time is a scarcity

Another scarcity belief that most people have is that they assume time isscarce This can be true in cases where people have too many responsibilitiessuch as managing work, spending time with family, friends, children, takingcare of domestic responsibilities, etc

All this can be quite overwhelming and make it tough for you to get it allright and often feel pressed for time This can mount into a pressure that canput you in multi-tasking mode making you juggle too many things at once

As per experts, 97% of people are not good at multitasking and it is best toremain focused on just one thing at a time

When it comes to balancing out your personal life with your professional life,working on a schedule can make a huge difference If you allot specific timesfor each task and do not let them interfere with each other, then this is thebest way to do it

Say for example you have to tidy up the garden and it has been long overdue.You also have a bunch of emails waiting In such a case, if you have adedicated time to perform home chores and not be disturbed by office workthen you will not feel like time is a scarce resource

You will be happily absorbed in tidying up the garden and not bother aboutgoing through your emails Once you are done, you can peacefully go back toyour emails.

Thus, the right abundance mentality needed to counteract this specificscarcity mentality is “I am thankful for my spare time.” This will let youbelieve that time is not a scarce resource and you can have extra time on yourhands to carry out different activities

You have to shift your thinking towards a positive mindset and be grateful foreverything you have, especially abundant time This will help you feel morerelaxed and finish your job in a better manner

There will not be any apparent pressures and you can have more You will beable to do your job well and finish things on time Not only will you havemore time to work and save, but you’ll also be able to establish strongerrelationships

Once you are aware and accepting of this, you will be able to live acomfortable life without the stress of being financially strapped It is aboutmaking a conscious effort to understand that money can be abundant and helpyou attain security for the basic necessities of life

Your richness does not have to stem from your bank balance alone but also

from the experiences you have gained by using the money to travel It isessential to look at money as a means to live comfortably and to also be able

to provide for your loved ones

It can take some time for you to undo this thought process but you will besuccessful with time

The right mindset to counteract this belief is “I am thankful for the money Iearn.” This can be a simple yet effective statement and can lead to a positiveoutlook

An example is to develop a mentality that can help you view money as apositive resource that will help you live life to the fullest As you can see,there are quite a few limiting beliefs that you have to undo to accept anabundance mentality

These beliefs can often stress you out and panic you You will feel as thoughyou are unable to pay your bills or save money, but by being positive andcountering the negative thoughts with positive affirmations, you cansuccessfully undo the negativity

Your financial situation will start to look up and you will be able to do morewith your money instead of spending it mindlessly Remember that you cancontrol how you think about money and the path you choose to walk on

Only an abundant mindset will defy a scarcity mindset You will stillencounter scarcity roadblocks on the way and will have to be aware of thehurdles

Effort should be made to move past them to reach your destination Thescarcity pathway can lead to experiences where you will not be satisfied withwhat you have or be able to live a fulfilling life

Here are seven tips that can help you undo the negative mindset and develop

a positive one

Thinking right

There is a big difference between thinking big and thinking small If youhave an abundance mindset then you will be able to think big It has to beingrained in your DNA to do so Scarcity mindset can make people thinksmall and in a limited capacity This can lead to roadblocks and curtailachievement.

Lots versus limited

If you develop the abundant mentality, then you will understand that there aremany things in the world that can be used resourcefully You will be able tocome out of a lacking mentality where you feel like everything is a limitedresource You will stop feeling like opportunities are limited and there is anabundance of wealth, love and relationships The more you recite positiveaffirmations, the better off you will be

Joy versus regret

People who have an abundant mindset will always be optimistic and happy.They will laud their achievements and success On the other hand, peoplewho have a scarcity mindset will be competitive and not appreciate theirsuccess and dwell on their loss They will resent other people’s achievementsand not be happy with their own

Accepting versus fearing

Those with an abundant mindset will accept change as opposed to fearing it.They will look at it as an essential part of life and accept their change Theywill appreciate the changes that come their way and wait for positiveoutcomes Those with a scarcity mindset will spend time complaining and notaccept change

Reactive versus proactive

Those who have an abundance mentality will lead a proactive life Instead ofwaiting on things, they will remain ready to take or implement the rightcourse of action They will have a strategic plan in place that can be easilyimplemented at the right time Those who have a scarcity mindset will bereactive and react to a situation instead of being ready or proactive

Always learning versus know it all

Those with an abundant mindset will not be satisfied with the knowledgethey have and will always be on the lookout to learn new things Their thirstfor knowledge will be never-ending, but those with a scarcity mindset willnot be enthusiastic to know new things and believe that they know it all.

Chapter Two: Taking a Hard Look at Your

Finances

When you wish to take on the minimalist lifestyle, you have to ensure thatyou are fully aware of your finances and the direction in which they aremoving Here are some things to look into

Why Do People Ignore Their Finances?

One of the most prominent issues related to finances is that most people tend

to ignore theirs It is understood that going through finances and moneymatters can be a stressful activity

Most adults stress over their financial wellbeing It is estimated that 70% ofpeople feel insecure about their finances

They tend to feel anxious and refuse to acknowledge their financial situation,but this is the wrong approach to adopt, as it will only lead to more anxiety inthe long run It is always a good idea to not ignore money matters and makesure you manage the debt

If you happen to be someone who is struggling to face your finances or are indenial and wish to take quick action, then here are some warning signs toidentify and deal with to get back on track

Warning Signs

Here are some warning signs to identify if you feel like you are ignoring yourfinances and what you can do about it

You try to get rid of money and financial thoughts

You try your best to divert the topic

You avoid going through credit card bills and bank statements

You aren’t aware of your credit score

You don’t know your true worth

If you happen to have any of these, then it will indicate you are unable toaccept your financial situation.

Thinking And Attitude

Most of your belief system and attitude stems from your belief about moneyand what you are taught from a young age Most adults tend to look at moneybased on what they were told from a young age

They remain in denial and avoid financial talk They base their beliefs onthings their parents teach them

It can be difficult to break free from that current belief system and reverse ascarcity mindset Most people are simply embarrassed by the debt they oweand allow their bank statements to pile up

It is important to move past this mentality and take the right steps towardsachieving financial well-being

Taking The Right Action

It is important to take the right action by keeping track of your income If youwish to track money that is going in and coming out then you have to look atyour spending

You will be able to assess your expenditure and look at where you shouldcurb your spending Having a spending plan can always help you It can be abudget that you can follow to stop yourself from feeling deprived

You must know where to hold back and where to spend If you go to partiesoften, then you can cut back on some of them and add the money to yoursavings account

If you dine out more, then you can save it by cooking more at home Onegood way of tracking your expenses will be by using automated services such

as apps and websites

They will have a premade planner or table where you can fill in details Youcan also give your bank instructions to transfer a certain amount into yoursavings account as soon as your paycheck comes in.

Automatic reminders can be put in place to remind you when a bill is due sothat you do not overshoot the payment date You will also find apps that cantrack your expenditure and help you meet your expenses in a better way

Getting Professional Assistance

It will not be an easy task to undo your belief system and you might end upignoring your financial standing to a point where you will not be able tocontrol your spending In such a case, it is best to approach a financialadvisor for assistance to change your behavior You will be at ease knowingthat a professional is handling your finances and you will not worry aboutrunning out of money

Facing Your Financial Situation

It is always tough to face your financial situation and the issues that can crop

up Nobody likes to deal with them or face the problems that come their way

They often feel negative and unable to move forward Despite placing focus

on the positives, things can get overwhelming

If you ask a person who is financially sound, then he will tell you that it tookhim several years to hit the winning formula and getting there was not easy Itcan take decades, if not years, for people to establish financial stability Itrequires a lot of dedication and doing the right things

Oftentimes, people tend to brush their problems under the rug to ignore them,but this is the wrong approach to adopt It can be less stressful to addressissues then and there as compared to stalling and having to deal with themlater

Assessing overall debt and managing it can always be better compared to

worrying over how much you owe It will help you take quick action andwork on paying off debts at the earliest time possible.

It will also put you in the habit of looking at your financial statements fromtime to time to solve your debt issues If you think you are better off ignoringyour finances instead of addressing your issues, then here are four things thatwill change your mind

Debt

If you end up ignoring your finances, then you will end up having debt Ifyou do not track your spending and not know where it is moving, then it canlead to debt

It does not matter how much money you are making If you do not track itsmovement then you are sure to invite unnecessary charges and spending

This is especially true if you own credit cards You might think you are ontop of all the transactions including the utility bills and other payments youmake, but it is important to know about the other minor transactions andspending that comes your way every month

You might be spending quite a lot on clothes, entertainment, groceries, etc.Knowing how much is being directed towards these can help you knowwhere to cut back and stop overspending You will be able to focus on bothshort-term and long-term spending

Savings

It is extremely important to add money to the bank, especially in this day andage, where things have become quite expensive Even if you might not needmoney immediately, you will in the future

You have to be prepared for it and add enough money in the bank to help you

in the future Having a savings plan or goal can help you save money in case

of an emergency that happens in the future

If you end up ignoring your finances, then your debt will accumulate and youwill have to keep redirecting money towards repaying it It is best to set up asavings fund instead so that you can successfully repay debt and save money.

Bear in mind that you can never manage things that you do not measure Youhave to know for sure where money is going and how much of your earningsare being spent

You need to have an emergency fund so that you know you are saving moneyfor future use

If you end up having a bad credit score, then you will not be able to borrowmoney easily In fact, it is not just credit companies that might be interested

in your credit score but also potential employers who would like to assessyour creditworthiness

Thus, it might be important to know how you stand financially and whetheryou have a healthy credit score Here are some things to pay attention to ifyou wish to maintain a healthy score

Make your payments on time and pay them off fully

Maintain a lower credit utilization rate or use about 30% of youravailable credit

Apply for a new credit card only if absolutely necessary and try tohave just one at one time

Have all your old lines of credit open even if they are not being usedanymore

Big-ticket items

If you are unable to track your finances or are running away from doing sothen it can end up becoming an issue when you try to buy big-ticket items.You might not be able to attract a good loan score and be in a position toaccess borrowings

Even if you are able to do so, then you might not be given the best rate ofinterest You will have to shell out more money on a monthly basis to repayyour loan and this will create a new financial pressure

You might not be able to afford other things and your finances will end upsuffering Your goals will be harder to achieve and fulfill

Remember that money should be viewed as a tool that can be used toestablish financial stability It can help you lay down the groundwork for thefuture

Ignoring your finances can end up pushing you back and lead to youcommitting errors The best thing is to get organized early to understand howmoney works and align your expenses with your earnings

Prepare a plan of action to start repaying your debt at the earliest timepossible so that you can save more Remain motivated and inspired to goafter your goals so that you can achieve financial stability

It might seem stressful and overwhelming but it has to be done Payingattention to your finances can ultimately help you avoid confusion and be onthe right track

Thus, it is best to educate yourself on this topic as much as possible so thatyou can start becoming financially sound at the earliest possible time

Tracking Your Money

One of the best ways to know where your money is spent is to look at yourpast bank statements Take a look at what things were wise purchases and

what things could have been done without.

If you wish to come up with an effective budget that will allow you to repaydebts and save money then go through your financial statements Not manypeople are willing to assess or interpret their statements And some people arenot sure how to interpret their statements

They often wonder why they are not left with enough money towards the end

of the month despite everything being in order You are scared to find outabout it and do not make the effort to interpret the statements

Do not worry, as you are not alone There are thousands of people out therewho refuse to learn how they can interpret their bank statements, but onceyou do, you will be able to modify it so that you can come up with a budgetand allocate the resources correctly

The biggest nudge will come your way when you realize you are unable toput aside enough money but do not worry, as you will be able to do so onceyou figure out where you are going wrong and the changes you need to make

You can be debt free in no time if you take the right steps It is necessary tonot give in to the stress of knowing you do not have enough resources athand

If you allow anxiety to take over then you will start running away from yourfinancial situation Once you go through this process, you will feel freer, andyou’ll have a better financial and mental situation

How To Analyze Your Spending

When you wish to look at your spending from the previous month, the firststep is to gather the bank statements and receipts and enter it into aspreadsheet Once that’s done, you have to analyze it to assess where yourmoney is going

If you think this is a tedious process, then you can consider making use ofapps and websites that allow you to manage your bills and receipts You will